Solana On The Brink? Price Stalemate At Crucial $140 Support

Christian Encila

11 months ago

3 mins read

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The fast blockchain network Solana (SOL) is having a balancing act. Although there is a temporary price increase, experts caution of a possible crash should a fundamental technical level fall.

Bullish Flicker Amidst Bearish Gloom

With a recent increase of 3.60%, SOL’s price now ranges roughly at $162. Still, this apparently positive development is against the background of a more general declining tendency. Analyses link this change in market attitude to this movement.

The RSI of the altcoin is 48, which points to a neutral posture in meantime. SOL is therefore not overbought or oversold, hence it has space to move in both directions.

Typical of times of consolidation, declining trade activity has been noted. Rising trade volume after a breakout should validate the trade’s direction.

Lifeline Or Looming Abyss?

Alan Santana, a crypto expert, underlines how important the Exponential Moving Average 100 (EMA 100) is as a necessary support level for SOL. Acting as a technical indicator, the EMA 100 shows the average price over the past one hundred days.

✴️ Support Weakens | Solana To Crash Below 100#SOL | #Solana

A trend following system uses a moving average as the main tool to generate trading signals for a system trader; the moving average is like the holy grail of technical analysis, together with the RSI.

The moving… pic.twitter.com/9d5NrjuWWR

— Alan Santana (@lamatrades1111) May 14, 2024

Historically, SOL has found favour at this level during positive times. Price breaks above the EMA 100 in September and October 2023 indicated good market attitude. But the reversal of the current trend clouds this previously dependable indication.

A Potential Price Plunge

Santana cautions that a decline below the present EMA 100, at about $140, might cause SOL to experience a major fall.

Investors may get afraid of this breach, which could cause a sell-off and drop the price even more. Should such a situation develop, the analyst issues a warning about a possible slide below $100.

Solana: Beyond The Technical

Remember the inherent volatility of the bitcoin market even while the technical study presents a worrying picture.

Solana is now trading at $162. Chart: TradingView

Technical indicator based short-term forecasts could not always be accurate. Price swings can also be much influenced by other elements such industry news, laws, and more general market trends.

For example, even if technical signs point to a decline, a good regulatory posture towards cryptocurrencies could raise investor confidence and cause a price rise.

On the other hand, bad news on a blockchain attack or security flaws could cause a sell-off, therefore contradicting optimistic technical signals.

The Road Ahead

Future course of Solana is yet unknown. Will the $140 price point shatter and send SOL spiralling down deeper, or will it provide a launchpad for a recovery?

Featured image from Pngtree, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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